Q-3. The following information regarding two stocks X and Y are provided below: Years X Y

2010 10% 35% 2011 12% 20% 2012 15% 17%

e. Suppose you have Tk.500,000 in your hand and you plan to invest Tk.300,000 in stock X and the rest of it in stock Y to create Portfolio Z. i. What is the Beta Coefficient of Portfolio Z? (2 marks) ii. What is the required rate of return of Portfolio Z in the same market condition? (2marks) f. Do you think investing in Portfolio Z is a better idea than investing only in either X or Y? Briefly explain why? (2 marks)